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Strategy For Creating a UAE Nuclear Industry
Dr. Mohamad Abdalla Chookah
Executive Director – Fuel Procurement and Analysis
Strategy For Creating a UAE Nuclear Industry 2
Safety Moment
A safe plant is a reliable plant
A reliable plant depends on a suitably qualified, experienced and responsive supply chain
A suitably qualified, experienced and responsive supply chain requires a degree of services to be local
THE UAE PEACEFUL NUCLEAR ENERGY PROGRAM
Strategy For Creating a UAE Nuclear Industry 4
About ENEC
Mission
To deliver safe, clean, efficient and reliable nuclear energy to the UAE grid, develop our people and build sustainable nuclear sector capability, and ensure full alignment with UAE energy strategy.
Vision
Powering the future growth and prosperity of the UAE through a safe and sustainable civil nuclear energy program.
Strategy For Creating a UAE Nuclear Industry 5
The Joint Venture
Strategy For Creating a UAE Nuclear Industry 6
The Subsidiaries
• In charge of operating and maintaining Barakah Units 1-4
• Will hold the Operating License
• Emirati-led, multinational and multicultural organization with around 40 nationalities
• Represents commercial interests of Barakah project
• Sells electricity to ADWEC through the Power Purchasing Agreement
• Manages commercial relationship with lenders
Strategy For Creating a UAE Nuclear Industry
The Barakah Site
Strategy For Creating a UAE Nuclear Industry
Prime Contract and Technology
Strategy For Creating a UAE Nuclear Industry 9
Overall completion: 84% (As of end-September 2017)
Strategy For Creating a UAE Nuclear Industry
CREATING A UAE NUCLEAR INDUSTRY
Strategy For Creating a UAE Nuclear Industry 11
Creating a UAE Nuclear Industry - Strategic Roadmap
Wave 1 Initiate, Setup & facilitate
Wave 2 Focus, Educate and Deliver
Wave 3 Institutionalize,
Improve and
transition
2023 2028 2018
Timeline
Wave 4 Lead, Expand and
Export
• Training - supporting existing
capability in up-skilling
• Partnerships - Facilitate
international partnerships
• Contracting – building in in-country
value in O&M phase
• Identifying investment opportunities
• Expand SQEP base
(academy)
• Invest in Research &
Development in
products and IP
• Transition from
international to UAE
suppliers
• Export
• Lead
• Centre of
Excellence
2017 2016
Unit 1
Fuel Load
Medium Term Planning
ENEC 5yr strategy plan
Long Term Planning
ENEC10yr roadmap
2020
All 4 reactors
ON
• Set up team
• Identify construction
opportunities & capability
• Facilitate prequalification of
existing capability to Kepco
• Coach selected companies
to upgrade products/ QA
Past Planning
ENEC 2010 Strategic Plan
Maturity
2013
Today
Strategy For Creating a UAE Nuclear Industry 12
Hurdles for Local Suppliers to Overcome
UAE companies
perceive limitations:
• Current awareness
• Current skills
• Current capability
• Cashflow risk
Hurdles / barriers to entry
• Quality - Lack of knowledge of quality standards
• Cost - Cost base is too high
• Timing - Lack of visibility of opportunities
• Cashflow – Lack of investment equity/debt
• Technical – Lack of experience Market opportunity
• Global market
• ENEC program
• Other UAE sectors
Strategy For Creating a UAE Nuclear Industry 13
Enablers to Overcome Barriers
UAE companies
• Current awareness
• Current skills
• Current capability
• Cashflow risk
Market opportunity
• Global market
• ENEC program
• Other UAE sectors
Enablers
• Quality – partnering/ coaching / training…
• Cost – grants, equity, tax breaks, low cost land/ rent…
• Timing – awareness of procurement timetable…
• Cashflow – loans, investment…
• Technical – acquisition/ partnering/ training…
• Incentives – scoring, obligations
Strategy For Creating a UAE Nuclear Industry 14
4 Elements to ENEC Strategy
Partnering (barrier – experience)
• Foster partnerships between UAE companies and international
experienced suppliers to the nuclear industry
• Pumps, valves, heat exchangers, cables, testing &
calibration, support services…
Training (barrier – quality, experience)
• Identify specific 3rd tier UAE potential suppliers and
provide direct training on QA/QC requirements
• Establish an ‘ENEC Nuclear Industry Academy’ to
provide training in technical, commercial and
management systems
• Coach on market opportunities, synergies across
markets in respect standard requirements and
project awareness
Contracting Strategy (barrier - cost, timing)
• Raise localization as a strategic imperative in the
ENEC/Nawah procurement strategy
• Introduce incentivization mechanisms into tenders
to increase inward investment and partnering eg.
• Localization award criteria / targets
• Staff rotation
• Off-set
Investment (barriers - cost, investment)
• provide ENEC support to assist in provision of up-skilling,
plant improvements, process improvements…
• Grants, loans. equity etc
• Managed by ENEC
• Applications approved by ENEC
• Performance managed by ENEC
Strategy For Creating a UAE Nuclear Industry 15
Evaluating and defining localization proposition and priming local suppliers has to come before implementation to optimize local content
Localization area roadmap
Fuel (fabrication) development and localization effort
Engineering services
R&D development & localization effort
Waste Management development & localization effort
Industrial export potential (accompanied to export credit)
O&M localization effort
Actual construction phase - 2021 Construction phase localization effort ($3.25BN)
Actual corporate operations – 2080+ Corporate localization effort (already at 89%)
Actual plant operations – 2080+
Actual waste mngt operations – 2080+
Actual plant operations – 2080+
Actual provision of services – 2080+
Actual delivery of R&D programs – 2080+
Actual exports
Strategy For Creating a UAE Nuclear Industry 16
Strategic Outcomes
• Responsive supply chain
• Diversification of supply chain (greater competition, less single point failure)
• ENEC supply chain that is less exposed to external issues (currency fluctuations, international politics, shipping, split priorities)
• Creation of direct job opportunities for Emiratis
• Enhance and diversify UAE industry (help meet 2030 vision and 40% GDP via non-oil & gas)
• Multiplier effect to GDP on all jobs created
• Retention of profit in country and creation of wealth
• Lower cost for ENEC and the UAE Peaceful Nuclear Energy Program as a whole
Thank You